HOME Program

About the Program

The primary purpose of the HOME Program is to expand the supply of decent, safe, sanitary, and affordable housing for very low-income and low-income households as determined by the Income Limits. U.S. Department of Housing and Urban Development provides annual funding to participating jurisdictions (SD Housing) to develop their own programs in partnership with local governments, nonprofit organizations, and the private sector. The HOME Program provides funds to developers and/or owners for the acquisition, new construction, and rehabilitation of affordable housing. The typical financing package would consist of 10% owner equity, 40% conventional loan, and 50% HOME funds. The HOME funds are loaned at a 0% interest rate with variable repayment terms.

Applications

Applications are due annually on the last working day of August at 5:00 p.m. Central Time. Completed applications must be delivered via SD Housing's online submission (preferred), U.S. Postal Service, private mailing service or hand delivery to SD Housing by 5:00 p.m. Central Time on the applicable due date. Applications via facsimile or e-mail will NOT be accepted. The HOME-HTC Application and pro-forma for the 2023 application round will be dated as July 2022. The following limits will be applied to the HOME funds available in 2023:

Applicants are no longer allowed to submit utility allowance calculations from the local Public Housing Authority. Applicants may document utility calculations from service providers, use the HUD Utility Schedule Model, or they may utilize the SD Housing Utility Allowance Worksheet to request the utility calculation from SD Housing. Please allow ten working days for the calculation of utilities from SD Housing. Request for utility allowance calculations must be received thirty days prior to application due date.  

For more information regarding the worksheet or utility calculation, please contact Andy Fuhrman at andy@sdhda.org or by calling (605) 773-3181.

*You will need Adobe Acrobat to fill out the application form. In order to save the application form, you will need to have Adobe Acrobat Professional 7.0

Set-Asides

A portion of the HOME funds is set-aside for specialized housing opportunities as detailed under Set-Asides.

Further requirements can be found in the HOME Allocation Plan.

SD Housing distributes HOME funds geographically throughout eligible areas of the state, taking into consideration the following set-asides:

Resource/Description and Set-Aside Amount

Community Housing Development Organizations (CHDO)
CHDO Application
CHDO Attachment A
Set-aside is for a nonprofit entity that has received a tax-exempt ruling under Section 501(c)(3) or (4) of the Internal Revenue Code and meets the CHDO requirements.

Set-Aside Amount: 15% (approximately $450,000)

Homeowner Rehab Policy And Procedures Manual
Homeowner Rehab Program Application
Set-aside is for Community Action Program agencies and qualified nonprofit entities for the purpose of rehabilitating single family, owner- occupied properties.

Set-Aside Amount: $1,000,000
(maximum of $200,000 per subrecipient per year)

Homebuyer Assistance Program Term Sheet
Homebuyer Assistance Program Application
HOME Homebuyer Feasibility Analysis Tool
Set-aside provides gap financing, downpayment or closing cost assistance to qualified homebuyers approved for the purchase of a home, including the Governor’s House.

Set-Aside Amount: $200,000

Security Deposit Assistance Program Term Sheet
Security Deposit Assistance Program Application
Set-aside is for qualified Public Housing Authorities and qualified nonprofit entities for the purpose of providing security deposits to qualified families.

Set-Aside Amount: $300,000

Difficult-to-Develop Areas
Set-aside is for projects determined by SDHDA to be difficult to develop, based on site location, size of project, target tenant population, and inability to repay with normal underwriting procedures.

Set-Aside Amount: $1,000,000

Homeownership Development
Set-aside is for the development of single-family homeownership; the homeowner must be identified at the time of application.

Set-Aside Amount: $500,000

Rural Housing Development
Set-aside is for projects in communities of 5,000 or less in population.

Set-Aside Amount: $1,000,000

American Rescue Plan (ARP)

The state of South Dakota was appropriated approximately $9.3 million through the American Rescue Plan Act of 2021. Funds were appropriated under Title II of Cranston-Gonzalez National Affordable Housing Act of 1990 (NAHA) under the HOME Program and is referred to as HOME-ARP. The primary purpose of HOME-ARP is to provide funding for homelessness assistance and assistance to other vulnerable populations through capital investment for permanent rental housing, upgrading available stock of shelter to include non-congregate shelter, and provide supportive services to the qualifying populations. Qualifying populations include homeless, at-risk of homelessness, fleeing/attempting to flee domestic violence, dating violence, sexual assault, stalking or human trafficking, and other populations where assistance would prevent the family’s homelessness and serve those with the greatest risk of housing instability. The HOME-ARP funds are loaned as 0% forgivable loans for affordable rental housing and non-congregate shelter, and provided as grants for supportive services.

The SD Housing Board of Commissioners met on October 11, 2022, and approved conditional reservations for five Non-Congregate Shelter applications and one Supportive Services application. The Board considered one application for Affordable Rental Housing and is allowing SDHDA staff to continue working with the applicant.

Due to not all of the HOME-ARP funds being reserved, SD Housing held a second HOME-ARP application round with applications due November 15, 2022 at 5:00 p.m. Central Time. There was $2.3 million available in the second application round. Conditional reservations will be announced soon.

Lead Based Paint

For housing built before 1978, lead-based paint could be a potential health risk. Lead is a highly toxic metal that may cause a range of health problems, especially in young children. When lead is absorbed into the body, it can cause damage to the brain and other vital organs, like the kidneys, nerves, and blood. Lead may also cause behavioral problems, learning disabilities, seizures, and in extreme cases, death. Some symptoms of lead poisoning may include headaches, stomachaches, nausea, tiredness, and irritability. Children who are lead poisoned may show no symptoms. All HOME-funded projects are required to document compliance with federal lead-based paint requirements. For more information on Lead-Based Paint requirements please view HUD’s Healthy Homes website.

Companies certified in South Dakota for the evaluation or abatement of lead-based paint

Program Funds Recipients

Eligibility Requirements

HOME funds may fund both rental and homeownership activities; however, rent and income restrictions, affordability periods, occupancy requirements, property standards, relocation and displacement requirements, and other federal requirements must be fulfilled. The minimum amount of HOME funds invested in a project that involves rental or homeownership housing is $1,000 per HOME-assisted unit. Refer to the HOME Program Allocation Plan for details regarding eligibility requirements. Developments financed with HOME funds must meet Section 504 Accessibility requirements.

Request for HOME funds are considered in a two stage process: Application and Conditional Commitment. No construction, acquisition, or rehabilitation activities may begin until the process is fully complete and a start order has been issued by SD Housing.

Prior to a commitment of HOME funds, the environmental impact of each activity carried out with HOME funds must be assessed in accordance with the provisions of the National Environmental Policy Act of 1969 (NEPA) and the related authorities listed in HUD's implementing regulations at 24 CFR Parts 50 and 58.

The environmental review is conducted by SD Housing and involves the following, as applicable:

1. Completing the appropriate level of environmental review.

2. Publishing required public notices.

3. Submitting to HUD a Request for Release of Funds and Certification.

4. Receiving from HUD approval of the Request for Release of Funds and Certification.

Application Procedure

To apply for HOME funds applicants must complete the HOME-HTC Application and supporting documents, which must be received by the SD Housing office in Pierre by 5 p.m. CDT on the last working day of August for the annual application round. Completed applications (refer to Exhibit 1 of the HOME Program Allocation Plan) must be delivered (via U.S. Postal Service, private mailing service, hand delivery, or submitted via SD Housing's online submission) to SDHDA by 5:00 p.m. Central Time on the applicable due date. Applications via facsimile or e-mail will NOT be accepted. SD Housing may hold additional application rounds if available funds remain. HOME funds are reserved, awarded, or distributed in a process that complies with the needs and priorities outlined in the Consolidated Plan. The quality and feasibility of a proposed project are also taken into account.

Requests for HOME funds are considered in a three-stage process: Application, Reservation, and Commitment. No construction or acquisition or rehabilitation activities may begin until the process is fully complete and a start order has been issued by SD Housing.

Prior to a commitment of HOME funds, the environmental impact of each activity carried out with HOME funds must be assessed in accordance with the provisions of the National Environmental Policy Act of 1969 (NEPA) and the related authorities listed in HUD's implementing regulations at 24 CFR Parts 50 and 58.

The environmental review is conducted by SD Housing and involves the following, as applicable:

1. Completing the appropriate level of environmental review.

2. Publishing required public notices.

3. Submitting to HUD a Request for Release of Funds and Certification.

4. Receiving from HUD approval of the Request for Release of Funds and Certification.

Projects receiving HOME funds are subject to compliance requirements.

Frequently Asked Questions (FAQs)

For further questions reference the HUD Exchange.